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Here’s How You Can Go on a Free Vacation Using Credit Cards

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If you are planning to go abroad in nearby future, it is wise to make use of travel credit cards to have a trip free or at discounted rates. While you may think to save money for vacation on other aspects, however, it is advisable to have an international travel insurance policy for your journey. A travel insurance policy will secure your trip form financial losses against unwanted events.

Travel Benefits of Using Credit Cards

Frequent travelers may already know about the rewards that travel credit cards offer. However, you can easily cut costs during your trip by availing some of these benefits:

• Air Mile Earnings:

Users can earn air miles as a reward every time they use a credit card for a purchase. Depending on the card, these miles can be used to travel for free once they're enough to buy a ticket.

• Free Flights:

Many card providers or airline cards also offer free flights as a part of their plan or welcome bonus, which can be used towards your trip.

• Flight Upgrades:

You can avail of these benefits offered by credit cards to their users, where they can opt for free flight upgrades. Premium cards also sometimes extend this benefit to companions.

• Forex Mark-up:

Among the essential travelling expenses are some credit cards with zero or low foreign currency mark-up fees. This is helpful on an international trip and saves a lot of money.

• Fuel Surcharge Waiver:

There are credit cards that don't need you to pay any surcharge fees when you buy fuel using a credit card. This will let you save considerable money if you're going on a trip by car. These benefits vary depending on which credit card you use, so make sure to buy a card that best suits your need. Other travel benefits include domestic and international airport lounge access, travel insurance coverage, priority pass discounted gold access, and a high reward rate while dining and shopping.

Ways to Travel for Free Using Credit Card Rewards

Many people are lured by different credit-card schemes and feel they can benefit easily. However, consider the following tips if you aim to earn a free trip easily:

1. Plan Your Trip Well

The first thing to know is the budget for your trip. Most credit cards offer generous welcome bonuses. But if you think you'll be able to get significant rewards enough for a trip, then you're wrong. Be careful about the initial offers and if they will be helpful to you. For example, Airmiles are useless to you if you're not a frequent flyer. Sometimes, the rewards offered after the initial welcome bonus aren't enough to cover the annual card membership or renewal fee.

2. Look Out for Loyalty Programs

You can opt for co-branded cards for flight upgrades, hotel stays, free flights, air miles and a lot more if you prefer a specific airline or hotel chain. In addition, several banks have partnered with airlines to offer unique benefits, specifically when you use their services. Also, confirm if the rewards point redemption is limited to air mile conversion only, this will let you avail of other services that your airline or hotel may offer.

3. Use Credit Card for all Travel-related Purchases

You need to have enough reward points to redeem for travel free of cost. So make sure to use your credit card as much as possible to maximize your rewards. With enough points, you can either book flights for your trip by redeeming points in cash or by redeeming the points elsewhere, such as hotel bookings. However, it's essential to use your card where it benefits you and not in places where it may place a surcharge or additional fee. So, for example, don't use your credit card for dining or booking flights if the reward rate isn't very high. Instead, you can use another card that offers excellent benefits and exceeds your annual card charges. Another thing to remember is always to compare the cost of booking in points versus the cost of booking in actual currency. If there's a huge disparity, opt for a different reward which has a higher value.

Conclusion

Next time you travel, ensure that you use the rewards of your credit cards in an appropriate way to enjoy a trip at free cost or at a heavy discount. After using credit card benefits for flight and hotel bookings, purchasing international travel insurance for your journey is advisable. You can opt for the HDFC ERGO travel insurance policy, which has a wide network of one lakh plus cashless hospitals.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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